Auto Loans for Good, Fair and Bad Credit
| Credit score | Average APR, new car | Average APR, used car |
|---|---|---|
| Source: Experian Information Solutions | ||
| Prime: 661-780 | 4.56% | 5.97% |
| Nonprime: 601-660 | 7.52% | 10.34% |
| Subprime: 501-600 | 11.89% | 16.14% |
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What is the average APR for a car loan?
The national average for US auto loan interest rates is 4.21% on 60 month loans. For individual consumers, however, rates vary based on credit score, term length of the loan, age of the car being financed, and other factors relevant to a lender’s risk in offering a loan.
What is a good interest rate on a car loan?
The average loan interest rate on a 60-month new car loan is 4.36%. However, borrowers with excellent credit pay a lower rate of around 3.724%. If you have a score lower than 720, you’ll pay an average of 5.098%. The lower credit score can cost you $18 per month and $1,100 in total interest.
Is a 60 month car loan bad?
Even with poor credit. Having a 60 month used car loan has both its pros and cons. The advantage of longer term loans is that you have longer to pay, and get a lower monthly payment. Five years is a long time to pay it off, so if you have a budget, it is definitely something to look for.
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